i think its best to be careful when placing a value on this stock i too own a fair swag of this stock the difficulty for Lynas will be selling all of its rare earth mix some of the rare earths mined are and will be in surplus and will be difficult to find a home so we will be relying on large increases in the 3 rare earths that are in demand to rise a great deal more for Lynas to achieve their basket price . Chinese policy for rare earths is to stockpile when the demand is low and increase production when there is shortages make no mistake they are quite capable of increasing supply at their wim as the price increases more and more mines around the world will come on line . Chinese tariffs are designed to make it more inviting for end users to move their factorys inside China to aid their own economy China will control rare earth prices at current levels. As lynas is further down the track than other mines around the world it is well positioned to sell forward orders I would like to see more contracts signed shortly and will be interested to see the mix of what gets sold . The end users will encorage mines like Lynas to come on stream as it allows diversity of supply.
Time will tell fingers crossed (and some toes)
LYC Price at posting:
49.5¢ Sentiment: Buy Disclosure: Held
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